It has been estimated that a total of MVR 4 billion would be printed through an overdraft of the Maldives Monetary Authority's public account by the end of December 2021.
The Ministry of Finance requested the Majlis, via a letter, to extend its ongoing suspension of certain articles within the Fiscal Responsibility Act; in order to print money by overdrafting the Central Bank's public account; by an additional year.
The suspension granted in 2020 was extended once again on April 2021 for a year. The next suspension that would be granted by the Majlis would give the government permission to print money until April 2023.
Without the suspension, the Ministry of Finance is only authorized to pay out 1% of total government revenue accumulated over the past three years. Currently, this value amounts of MVR 183 million.
While the Ministry of Finance estimates that it would pay out MVR 4 billion in printed money by the end of the current year, it has so far paid out MVR 2.8 billion. The Ministry had said that the budget would face difficulties if that money were to be paid out in the short run.
The Ministry of Finance made three requests of the Majlis. The first of those requests was an extension of the permission to print money until April 2023, and the second was to consider the MVR 4 billion overdraft as a 50-year bond at 2% interest sold by the MMA to the Ministry of Finance. The third was to determine that the amount of money to be printed between January 2022 and April 2023 would be MVR 3.5 billion.
The MMA has stated that printing money posed the risk of increasing inflation and the devaluation of the Maldivian Rufiyaa with regards to the United States Dollar. The MMA has objected to the Ministry of Finance's request to print more money.